Ravikumar Dhandhania v. The Income Tax Officerward I(4) Salem,Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE K.RAVICHANDRABAABU Writ Petition No.9899 of 2018andWMP.Nos.11835 & 11836 of 2018 Ravikumar Dhandhania .. Petitioner vs. The Income Tax OfficerWard I(4) Salem,Room No.306, 3rd Floor,New Building, No.3, Gandhi Road,Salem - 636 007...Respondent Writ petition filed under Article 226 of the Constitution ofIndia to issue a Writ of Certiorari, to quash the impugnednotice dated 26.03.2018 bearing Pan No. /W-1(4)/SLMunder Section 226(3) of the Income Tax Act, 1961 issued by therespondent. For Petitioner : Mr.R.Lakshmi RatanFor Respondent : Mr.ANR.Jaya Pratapstanding counselO R D E R The petitioner is aggrieved against attachment of the Bankaccount made through the impugned proceedings dated 26.03.2018.The petitioner is an Assessee under the respondent. Thepetitioner filed the return of income for the assessment year2007-2008 on 05.03.2009, admitting an income of Rs.1,57,410/-.Thereafter, the petitioner filed a revised return along with thetax payable on such revised return since an income ofRs.3,20,00,000/- was said to have been inadvertently omitted tobe shown as income, while filing the original return. It isstated that the petitioner had made several payments amountingto Rs.1,07,63,080/- towards self assessment tax, based on therevised return. An order of assessment dated 30.01.2015 wasissued, wherein the Assessing Officer had arrived the taxpayable including the interest as Rs.2,32,48,360/-. Since thepetitioner had already paid Rs.1,07,63,080/-, the respondentissued a demand notice dated 30.01.2015, calling upon the https://hcservices.ecourts.gov.in/hcservices/ petitioner to pay a sum of Rs.1,24,85,280/-, which is theinterest accrued under Sections 234A, 234B and 234C. Therespondent has also initiated penalty proceedings under Section271(1)(c), by issuing a penalty notice dated 30.01.2015.However, based on the representation made by the petitioner on27.03.2015, the respondent dropped the penalty proceedings. Thepetitioner filed a waiver application on 06.04.2015 for waivingthe interest claimed by the respondent under Sections 234A, 234Band 234C. Since the said application was not considered, thepetitioner filed WP(MD) No.16001 of 2016 before the MaduraiBench of this Court for early disposal of the waiverapplication. By order dated 26.08.2016, the Madurai Bench ofthis Court directed the Chief Commissioner of Income Tax,Tiruchirapallitoconsiderthewaiverapplication.Subsequently, the said application was rejected. Pursuant tosuch order of rejection, the petitioner has paid a sum ofRs.1,24,85,280/- towards the interest portion and taxoutstanding by way of several bank challans. However, thepetitioner was served with a notice dated 30.01.2018, callingupon him to pay Rs.28,61,596/- towards interest accrued underSection 220(2) of the Income Tax Act, for delayed payment ofinterest claimed by the respondent. Thereafter, the petitionermade a representation on 12.02.2018, to waive the interest oninterest. However, the respondent proceeded to issue theimpugned notice on 26.03.2018 to the petitioner's banker andattached his bank Account No.042001001718285. Therefore, thepresent writ petition is filed before this Court. 2. When this writ petition was entertained by this Court on20.04.2018, this Court, after recording the prima facie view,granted an interim order of stay. Consequent upon such stay,the attachment order was withdrawn on 27.04.2018, as admitted inthe counter affidavit filed by the respondent. Apart fromsaying so, the respondent has stated the facts andcircumstances, which necessitated for issuing the impugnedproceedings. 3. Heard both sides. 2. When this writ petition was entertained by this Court on20.04.2018, this Court, after recording the prima facie view,granted an interim order of stay. Consequent upon such stay,the attachment order was withdrawn on 27.04.2018, as admitted inthe counter affidavit filed by the respondent. Apart fromsaying so, the respondent has stated the facts andcircumstances, which necessitated for issuing the impugnedproceedings. 3. Heard both sides. 4. The learned counsel for the petitioner submitted thatsince the attachment is now lifted, the respondent may bedirected to consider the petitioner's application dated12.02.2018 for waiver of the interest. 5. The learned standing counsel for the respondent submittedthat if any such application is filed by the petitioner, thesame will be considered and appropriate orders will be passed onmerits and in accordance with law. However, he submitted thatthe petitioner may be directed to furnish one more copy of the https://hcservices.ecourts.gov.in/hcservices/ said application to the respondent, so that an order will bepassed without loss of further time. He further submitted thattill an order is passed in the said application, no coercivesteps will be taken against the petitioner. 6. In view of the above stated facts and circumstances andin view of the fact that the respondent has withdrawn theattachment proceedings; that the petitioner's application dated12.02.2018 seeking waiving off interest is said to be pendingbefore the respondent and that the learned standing counselagreed to consider the said application and pass orders on thesame on merits and in accordance with law, this writ petition isdisposed of, without expressing any view on the merits of theclaim made by the petitioner on the request for waiver ofinterest, only with a direction to the respondent to considerthe said application and pass orders on the same on merits andin accordance with law, within a period of four weeks from thedate of receipt of a copy of this order. The petitioner shallalso furnish a copy of the said application to the respondentonce again along with a copy of this order, within a period of 7days from the date of receipt of a copy of this order. Till anorder is passed by the respondent in the application, nocoercive steps shall be taken against the petitioner for theinterest portion demanded in the impugned proceedings amountingto Rs.28,61,596/-. No cost. Consequently, connectedmiscellaneous petitions are closed. Sd/- Assistant Registrar(CS-IX) //True Copy// Sub Assistant RegistrarmkTo The Income Tax OfficerWard I(4) Salem,Room No.306, 3rd Floor,New Building, No.3, Gandhi Road,Salem - 636 007. 1 cc to MR. R. Lakshmi Rajan, Advocate SR.60044 1 cc to Mr.R.P. Srinivas, Advocate Sr.60044 W.P.No.9899 of 2018 (Cs-IX)EU(16/10/2018) https://hcservices.ecourts.gov.in/hcservices/